National Student Loan and Credit Report Debt Attorney

Student Loan Debtors on Strike?

Rate this post

Student Loan Debtors on Strike Against Repaying Debt

Consumers are growing more and more disgruntled about their student loans and the laws that involve them. Originally called the “Corinthian 15,” 15 former students of the now defunct Corinthian College refused to repay their student loans because as they write “we paid dearly for degrees that have led to unemployment or to jobs that don’t pay a living wage.” This letter was sent to the Department of Education that regulates private colleges and student loans.

Now this debt strike has picked up 85 more burdened borrowers who are willing to default their student loans to bring government attention to our nation’s enormous student loan problem. Currently both federal and private student loans are ineligible for bankruptcy. This means no matter what financial hardship a borrower is experiencing, something must be paid back on a student loan.

I don’t forsee a favorable result for the Corinthian 100 arguing for a complete forgiveness of the debt.  Billions of dollars in debt would suddenly become at risk if they were successful in avoiding the debt in total.  It is a bridge too far in today’s legal, banking, and political environment.

A different strategy would yield better results.  For example, private student loan debt can often be settled for an amount that is significantly less than the amount claimed due. A qualified debt settlement attorney can often negotiate with a private lender for a principal balance reduction on the original amount.  The Corinthian 100 would be better suited to engage legal counsel to negotiate a settlement on their behalf.  Their plight is certainly one of many things a private student loan lender would consider in settling their debt.

 

Student Loan Debtors on Strike? was last modified: September 20th, 2016 by Kevin Fallon McCarthy
The following two tabs change content below.
mm
Kevin Fallon McCarthy is the McCarthy Law PLC’s managing attorney and an experienced Phoenix debt attorney. Mr. McCarthy has also worked as general counsel for a large corporation. He has corporate counsel experience in human resource matters, general corporate governance, and union class action litigation.
mm

Latest posts by Kevin Fallon McCarthy (see all)

START NOW
Call 855-976-5777 or Chat Now
  • How much do you owe?
    Select your approximate debt.
    Less debt
    More debt
  • The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.